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Issues: Whether a substitute arbitrator could be appointed under Section 11(6) of the Arbitration and Conciliation Act, 1996 after the earlier arbitral award had been set aside, and whether the Court could still resort to Section 34(4) or direct an additional award after the Section 34 proceeding had concluded.
Analysis: The earlier award had already been quashed in its entirety, so the proceeding under Section 34 was no longer pending. In that situation, the power to adjourn the Section 34 proceeding and enable the tribunal to remove the grounds for setting aside the award was unavailable. The Court also noted that neither side had sought an additional award, making that course inappropriate. Since the fresh adjudication had to proceed de novo after the award was set aside, and the original panel consisted only of serving or retired railway officers without judicial expertise, the Court held that departure from the agreed arbitral procedure was justified to secure fair and effective adjudication.
Conclusion: A new arbitrator could be appointed under Section 11(6), and a former Judge of the High Court was nominated as arbitrator for the contractual dispute.
Ratio Decidendi: Where the original arbitral award has been set aside and the Section 34 proceeding is no longer pending, the Court may appoint a substitute arbitrator under Section 11(6) if the agreed arbitral mechanism has failed to produce a fair and effective adjudication.
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